Does inheritance taxation reform promote to build inexpensive rental housing?
Naoto Mikawa,
Shohei Yasuda and
Norifumi Yukutake
Journal of the Japanese and International Economies, 2023, vol. 68, issue C
Abstract:
The inheritance taxation reform of 2015 in Japan substantially increased the amount of tax levied on large inheritances. This potentially served as a good incentive for people to build inexpensive low-rise apartments for tax savings, which increased the number of low-cost apartments. Therefore, this study investigates the effect of inheritance taxation reform on housing rents. Using the difference-in-differences method, we reveal that the inheritance taxation reform decreased the housing rents of wooden or light steel-framed apartments by 1.3%. Moreover, our results indicate that while the rental of slightly older housings belonging to the treatment group decreased, the rental of new housing belonging to the treatment group did not change.
Keywords: Inheritance tax; Building structure; Rental housing market; Japan (search for similar items in EconPapers)
JEL-codes: H26 R31 R38 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:68:y:2023:i:c:s0889158323000102
DOI: 10.1016/j.jjie.2023.101255
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